Gold gains against the delay of US stimulus vote

Gulf Today Report

Gold prices jumped on Wednesday despite US Republican leaders postponing Senate vote on increased stimulus aid.

Spot gold rose 0.2% to $1,881.62 per ounce by 05:48 GMT. US gold futures were up 0.2% at $1,886.20.

Micheal Langford, director at corporate advisory AirGuide said: "a weaker dollar is enough to create a small upward momentum for confidence to be maintained in gold." 

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Langford added that the $2,000 stimulus aid is likely to be approved and that would help gold to continue gaining.

Gold serves as a shield against inflation and currency debasement that could result from the large stimulus packages injected into the economy.

Investors look forward to Jan.5 Georgia runoff elections that would decide which political party will take the lead of the US Senate.